Is my pension safe if the provider goes bust?

02 September 2021

Question by Martin

I have a pension pot of around £250.000 held with Tru potential investment. Is it safe should the company go bust ?


Answered by Matt Angell

Hi Martin,

True Potential is a very large business with a good balance sheet but fortunately in the event of them ever going bust, you do have the excellent cover of the financial services compensation scheme (FSCS) They provide you with the following cover if your pension provider fails 100% of your claim, with no upper limit.

If your pension was a SIPP and the company fails then you have the following cover up to £85,000 per eligible person, per firm.

However having had past experience with True Potential, their pension is not a full SIPP so you have 100% cover, with no upper limit.

Hope this helps with your question and gives you the peace of mind needed.

Thanks

Answered by

Matt Angell

Founder & Financial Planner

I am the founder of Creative Lifestyle Planning, an independent financial planning firm that works with many families across the UK. Matt specialises in helping families to answer those all important questions they have on their mind and helping many clients gain a clearer, simply understanding of when and how to they can retire.